Hand Enterprise Again Files for Hong Kong IPO, GTJA Haitai Sole Sponsor, AI Revenue Reaches RMB 310 Million

Hand Enterprise Solutions (Hand Enterprise) refiled its listing application with the Hong Kong Stock Exchange on July 29, with GTJA Haitai Investment as the sole sponsor. The prospectus, citing Frost & Sullivan data, stated that the market size for enterprise IT consulting and digital solutions services in China reached RMB 196.2 billion in 2025, with Hand Enterprise ranking first among domestic Chinese firms with a 1.7% market share. The company's AI-related service revenue increased from RMB 22.1 million in 2023 to RMB 310 million in 2025.

During the reporting period, Hand Enterprise's gross trade receivables and notes receivable remained elevated, standing at RMB 1.203 billion, RMB 1.396 billion, RMB 1.502 billion, and RMB 1.631 billion at the end of each period, respectively. Loss provisions were RMB 693 million, RMB 717 million, RMB 758 million, and RMB 777 million, among which trade receivables aging over three years reached RMB 544 million. The turnover days for trade receivables, notes receivable, and contract assets were 187 days, 175 days, 181 days, and 209 days, respectively. For the first four months of 2026, net cash used in operating activities was RMB 178 million.

During the reporting period, Hand Enterprise had 400 loss-making projects with a total loss of RMB 133 million. Among these, industrial digital solutions, financial digital solutions, ERP consulting and implementation services, and IT outsourcing services had 106, 128, 122, and 42 loss-making projects, respectively.

The technology system of Hand Enterprise's enterprise-level PaaS platform H-ZERO is deeply integrated with third-party commercial software and open-source ecosystems. In 2025, the ERP consulting and implementation business, which accounted for 29.7% of total revenue, was primarily based on third-party software suites such as Oracle and SAP. The AI technology and cloud-native architecture extensively integrated open-source foundational models and frameworks. H-ZERO adopted the Spring Cloud microservices architecture, and secondary development based on open-source components introduced intellectual property risks.

During the reporting period, Hand Enterprise failed to pay full social insurance for some employees. The total shortfalls in social insurance contributions were RMB 37.4 million, RMB 59.8 million, RMB 43 million, and RMB 15.1 million, cumulatively amounting to RMB 155 million. Under relevant laws and regulations, failure to pay on time could result in fines of one to three times the total shortfall, with a maximum penalty of up to RMB 465 million. During the same period, the company's outsourcing costs were RMB 291 million, RMB 389 million, RMB 520 million, and RMB 140 million, with the proportion of total cost of sales rising from 13.2% to 23.3%.

In January 2017, Hand Enterprise's chairman Chen Diqing mistakenly sold 100,000 shares during the purchase of the company's A-shares, which was deemed a short-swing trade by the Shenzhen Stock Exchange, resulting in a regulatory letter. The related profit of approximately RMB 74,200 was fully returned to the company. In February 2020, the Shenzhen Stock Exchange's Growth Enterprise Market (GEM) company management department issued a regulatory letter regarding related-party transactions totaling approximately RMB 139 million between Hand Enterprise and its affiliates Shanghai Zhengyun Information Technology Co. , Ltd. and Shanghai Zhenhui Information Technology Co. from 2018 to 2019, noting that the company had not complied with pre-approval procedures and disclosure obligations. Hand Enterprise completed its GEM IPO in February 2011, raising net proceeds of approximately RMB 760 million, followed by a private placement in February 2016 and a convertible bond issuance in November 2020, with net proceeds of RMB 55.2825 million and RMB 923 million, respectively.